Discussing Game Publishing With Prevail Private Capital

Our CEO, Ben Kvalo recently, spoke with our investor, Andrew Stafford – President of Prevail Private Capital, about our work at Midwest Games. Learn more about our approach to the video game industry and what sets us apart in this three-part video series.

What is Game Publishing? 

When you hear “publisher”, most people think of books. Video game publishing is similar, but perhaps more complicated. According to Ben, there are over 40 different disciplines within game publishing but the core four that he focuses on are strategy, production, marketing, and development services. 
‍

A game developer’s end concern is how to sell their game, across physical and digital storefronts. With over 21,000 games released on the PC marketplace last year - standing out is harder than ever. More innovative strategies and tactics are now needed to get games noticed, and that’s where a publisher’s expertise shines.

‍

In the game industry, it’s best to gain knowledge through experience, with Ben saying it can take 10 years in the industry to have a solid understanding of the field. The successes and failures that come with continually being in the publishing space allow groups like Midwest Games to see what the market is reacting to and how to apply those lessons in the future. 

‍

While self-publishing is possible, publisher expertise still brings many benefits. Out of the tens of thousands of games released in a year, only 2% of those games have publisher backing, but those games end up making 90% of the total revenue. Under the standard model, game developers will sign with a publisher and the profitability relies on the publisher’s ability to promote the game. More often than not, this will also require developers to give much of their game rights to the publisher. Midwest Games breaks the traditional publishing mold. 

‍

How Midwest Games Is Redefining Game Publishing

In the previous video, Ben and Andrew discussed how the traditional publishing model requires developers to give up the rights to their games and the significant decrease in revenue they receive compared to the publisher. Publishers will often make large investments upfront to promote a game, and will use the revenue to recoup the initial cost. This means developers earn less and it can be difficult for game studios to stay open. The Midwest Games model empowers developers to be more sustainable long term by letting developers keep the rights to their games. Rather than a traditional revenue share, clients pay Midwest Games upfront like a consultant. This allows developers to keep their rights, and we don’t have to worry about making a large investment that we’ll have to earn back later. 

‍

This innovative business model has benefitted developers and also publishers, to the point where publishers are our primary clientele. Investing in a game is risky, and the more you invest the riskier it is. Partnering with Midwest Games allows that risk to be reduced by lowering fixed costs, saving a publisher up to 50% on their operations. 

‍

How Midwest Games Creates Flexible Publishing Deals 

In the final part of our interview series, Ben discusses the importance of flexibility and what that means for developers who have a great game but maybe not the capital to move forward.

As you heard in the last two videos, Midwest Games handles publishing differently. We charge an upfront fee for our services rather than a large revenue share. But what happens if a developer can’t afford to work with us? No need to worry, we’re flexible. Ben compares payment models to a series of levers. These levers are typically fees, revenue share, long-term partnership, or even equity in the game studio. Publishers and investors usually stick with one or two levers, but Midwest Games is open to all options and are willing to mix and match. With the one-size-fits-all approach, publishers would pick up many titles at once and hope one was successful enough to make up for the others. They create a portfolio of titles whereas Midwest Games creates a portfolio of models. The variety of models showcase our flexibility and allow us to put resources in different places to provide additional support where needed. 

‍

Traditional publishing, in games, music, or other industries, creates unnecessary friction between the publisher and the creator. Publishers have complete control of a game that they aren’t creating. The priority is recouping investment without considering the work the developers are putting in. Throughout the process of bringing a developer on board, we are aligned with them and their process compared to traditional publishers. We know you want your game to succeed, we want your game to succeed, and we will be with you every step of the way to ensure that happens.

‍

Need Support? 

We offer full support for games, from strategy to production and everything in between, while you stay in control of your title. If you’re interested in learning more, check out our services page. If you have any questions or are interested in seeing how we can help your game succeed, send us a message. We are excited to share our expertise with you.